The International Beer Industry – Opportunities for Carlsberg
Department of Economics Author:
Bachelor Thesis Anne Mette Lund Madsen
Gina Helland Hauge
Advisor:
Valdemar Smith
The International Beer Industry –
Opportunities for Carlsberg
The Aarhus School of Business
2009
Abstract
In this thesis there has been an evaluation of the strategy followed by Carlsberg in the Western and Northern European beer market and the objective was to find out if their current strategy is the right one for the company. This market was chosen because it is stagnating and challenging for Carlsberg, especially due to the financial instability in the world markets. When investigating this, there have been used internal and external analyses. Due to Carlsberg’s current strategy concerning growth and expansion, merger theory has been taken into account as well. The Western and Northern European market is a market where Carlsberg faces great challenges and it is therefore important for them to maintain market share. One objective in Carlsberg’s strategy is to lower their debt and increase the cash flow in order to stabilize their share price and ensure investors that Carlsberg is a favourable investment. This seems suitable in the current market. It also creates opportunities for the future where Carlsberg can be able to pursue their long-term strategy of growth and expansion through mergers and acquisitions. In the long-run, Carlsberg have many opportunities, however, there are some obstacles for achieving their goals, such as their ownership relations and their large debt. Their current debt will eventually be lowered if they choose to do this, but the ownership relations are more binding and cannot be dissolved easily. The investigation and research that has been conducted shows that Carlsberg should follow their current strategy on the Western and Northern European market. Carlsberg’s future depends on how they manage to utilise their opportunities as well as maintain or increase market share.
Table of contents 1.
Bachelor Thesis Anne Mette Lund Madsen
Gina Helland Hauge
Advisor:
Valdemar Smith
The International Beer Industry –
Opportunities for Carlsberg
The Aarhus School of Business
2009
Abstract
In this thesis there has been an evaluation of the strategy followed by Carlsberg in the Western and Northern European beer market and the objective was to find out if their current strategy is the right one for the company. This market was chosen because it is stagnating and challenging for Carlsberg, especially due to the financial instability in the world markets. When investigating this, there have been used internal and external analyses. Due to Carlsberg’s current strategy concerning growth and expansion, merger theory has been taken into account as well. The Western and Northern European market is a market where Carlsberg faces great challenges and it is therefore important for them to maintain market share. One objective in Carlsberg’s strategy is to lower their debt and increase the cash flow in order to stabilize their share price and ensure investors that Carlsberg is a favourable investment. This seems suitable in the current market. It also creates opportunities for the future where Carlsberg can be able to pursue their long-term strategy of growth and expansion through mergers and acquisitions. In the long-run, Carlsberg have many opportunities, however, there are some obstacles for achieving their goals, such as their ownership relations and their large debt. Their current debt will eventually be lowered if they choose to do this, but the ownership relations are more binding and cannot be dissolved easily. The investigation and research that has been conducted shows that Carlsberg should follow their current strategy on the Western and Northern European market. Carlsberg’s future depends on how they manage to utilise their opportunities as well as maintain or increase market share.
Table of contents 1.
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